Registering your property will be an expensive affair from Tuesday with the Delhi government notifying the new circle rates in the capital. Circle rate is the minimum amount a buyer pays for registration.
Sources said as there was no elected government in Delhi, the authorities saw it as a good opportunity to increase the circle rates and increase its revenue. Circles rates were last revised by the Sheila Dikshit government in 2012.Circle rates are different for various categories of properties as prescribed by the municipal corporations and are calculated under the unit area method. The entire city has been divided into eight categories, A to H. The A category is given to the most affluent colony.
While circle rates have been increased across the board by 20% for all categories, Delhi government officials maintained that they are still quite less than the prevailing market rates at which transactions are taking place.
“It has been noticed that the actual transactions are taking place at the rate of an amount much less than the prevalent market rates.
To curb the flow of black money, it has become important to rationalize the minimum circle rates on a regular basis,” said a senior Delhi government official.
A senior Delhi government official said the move would not necessarily lead to an increase in the property prices. “Property owners might benefit from the move as banks also generally give loan according to the prevalent circle rates in the area,” added the official.